Corn futures are called 3 to 4 cents higher. Overnight trade was 2 1/2 to 5 cents higher. The strong losses posted yesterday are expected to be consolidated this morning. Sharp losses in the stock market and concern about a slowing global economy triggered the sell-off. The long position still held by the funds leaves the market at risk of further long liquidation.

Soybean futures are called 2 to 3 cents higher. Overnight trade was 2 1/2 to 3 1/2 cents higher. The market is expected to bounce slightly from losses posted yesterday. The sharp drop in China's stock market will be an underlying bearish factor on concern that a slowing economy there will hurt export demand for U.S. soybeans. Increasing harvest progress in South America will also soon begin to choke off export demand for U.S. supplies.

Wheat futures are called 2 to 3 cents higher. Overnight CBOT trade was 1/2 of a cent lower to 3 cents higher and the KCBT was 1 cent higher to 3 3/4 cents lower. Despite the sharp losses on Tuesday, futures were able to bounce off of lows and limit chart damage. We look for the market to bounce slightly this morning, but a defensive tone is likely to persist for the next few days.

Cattle futures are called steady to mixed as traders wait for direction from the cash market. Cash markets are expected to be higher this week compared to the mostly $91 trade last week. Some consolidation of recent gains is likely, but the solid recovery from lows yesterday and strength in the face of a sharp decline in the stock market has left futures looking technically strong.

Lean hog futures are called steady to mixed. The cash market is expected to be mixed this morning as well. Packer margins remain positive, but the 96 cent drop in pork cutouts on Tuesday may limit buying interest. The ability of futures to rebound from early weakness yesterday could provide some light technical buying interest this morning.